STOP!! OR I”LL SHOOT PARTS 1,2, AND 3

Why the “Balanced Budget Amendment” is a

Hoax – and a Deadly Trap

By Publius Huldah.

 Introduction By James P. Harvey

07 19 11

 I sure as hell hope the title of this letter got your attention, because if it did not there will be civil war in America sooner than you think, and a lot more shooting will be going on in your neighborhood, as bands of starving looters rob and rape anyone then can. Got food? No! OK, lay down then.

Take this to the bank folks, when America goes down many of us will not take it laying down, and that is where we’re headed if these scumbags pass this bill.

Mr. HATCH (for himself, Mr. LEE, Mr. CORNYN, Mr. KYL, Mr. MCCONNELL, Mr. TOOMEY, Ms. SNOWE, Mr. RISCH, Mr. RUBIO, Mr. DEMINT, Mr. PAUL???, Mr. VITTER, Mr. ENZI, Mr. KIRK, Mr. THUNE, Mr. ALEXANDER, Mr. INHOFE, Mr. CRAPO, Mr. BURR, Mr. BARRASSO, Mr. COBURN, Mr. MORAN, Mr. LUGAR, Mrs. HUTCHISON, Mr. ISAKSON, Mr. BROWN of Massachusetts, Mr. JOHNSON of Wisconsin, Mr. GRAHAM, Mr. GRASSLEY, Mr. SHELBY, Mr. SESSIONS, Mr. MCCAIN, Mr. BOOZMAN, Mr. ROBERTS, Ms. COLLINS, Mr. HOEVEN, Mr. CHAMBLISS, Ms. AYOTTE, Mr. BLUNT, Mr. COATS, Mr. COCHRAN, Mr. CORKER, Mr. ENSIGN, Mr. JOHANNS, Ms. MURKOWSKI, Mr. PORTMAN, and Mr. WICKER) introduced the following joint resolution which was referred to the Committee on the Judiciary


Balanced Budget Amendment, Senate Joint Resolution 10 (March 31, 2011).

Proposing an amendment to the Constitution of the United States relative to balancing the budget.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled (two-thirds of each House concurring therein), That the following article is proposed as an amendment to the Constitution of the United States, which shall be valid to all intents and purposes as part of the Constitution when ratified by the legislatures of three-fourths of the several States:

‘Section 1. Total outlays for any fiscal year shall not exceed total receipts for that fiscal year, unless two-thirds of the duly chosen and sworn Members of each House of Congress shall provide by law for a specific excess of outlays over receipts by a roll call vote.

‘Section 2. Total outlays for any fiscal year shall not exceed 18 percent of the gross domestic product of the United States for the calendar year ending before the beginning of such fiscal year, unless two-thirds of the duly chosen and sworn Members of each House of Congress shall provide by law for a specific amount in excess of such 18 percent by a roll call vote.

‘Section 3. Prior to each fiscal year, the President shall transmit to the Congress a proposed budget for the United States Government for that fiscal year in which–

‘(1) total outlays do not exceed total receipts; and

‘(2) total outlays do not exceed 18 percent of the gross domestic product of the United States for the calendar year ending before the beginning of such fiscal year.

‘Section 4. Any bill that imposes a new tax or increases the statutory rate of any tax or the aggregate amount of revenue may pass only by a two-thirds majority of the duly chosen and sworn Members of each House of Congress by a roll call vote. For the purpose of determining any increase in revenue under this section, there shall be excluded any increase resulting from the lowering of the statutory rate of any tax.

‘Section 5. The limit on the debt of the United States shall not be increased, unless three-fifths of the duly chosen and sworn Members of each House of Congress shall provide for such an increase by a roll call vote.

‘Section 6. The Congress may waive the provisions of sections 1, 2, 3, and 5 of this article for any fiscal year in which a declaration of war against a nation-state is in effect and in which a majority of the duly chosen and sworn Members of each House of Congress shall provide for a specific excess by a roll call vote.

‘Section 7. The Congress may waive the provisions of sections 1, 2, 3, and 5 of this article in any fiscal year in which the United States is engaged in a military conflict that causes an imminent and serious military threat to national security and is so declared by three-fifths of the duly chosen and sworn Members of each House of Congress by a roll call vote. Such suspension must identify and be limited to the specific excess of outlays for that fiscal year made necessary by the identified military conflict.

‘Section 8. No court of the United States or of any State shall order any increase in revenue to enforce this article.

‘Section 9. Total receipts shall include all receipts of the United States Government except those derived from borrowing. Total outlays shall include all outlays of the United States Government except those for repayment of debt principal.

‘Section 10. The Congress shall have power to enforce and implement this article by appropriate legislation, which may rely on estimates of outlays, receipts, and gross domestic product.

‘Section 11. This article shall take effect beginning with the fifth fiscal year beginning after its ratification.’.

 My guess is that most people did not read this far, and those who did are not aware of any big problem, and that is what’s really wrong in America; congratulations to Public Education. If you keep reading you may learn something………………..Maybe!

Why the “Balanced Budget Amendment” is a Hoax – and a Deadly Trap

By Publius Huldah.

You can not responsibly support a proposed Amendment to Our Constitution unless you have read and understand the proposal and how it would change our Constitution. You must look behind the nice sounding name!  Will the Balanced Budget Amendment (BBA) really “reign in” the federal government? Will it really “show them” that they have to balance their budget the same as we do?

Or does it actually legalize spending which is now unconstitutional?  Is it actually a massive grant of new constitutional powers to the President and the federal courts – a grant which will cut the Heart out of The Constitution our Framers gave us?

Amending the Constitution is serious business – and you are morally bound to get informed before you jump on The Amendment Bandwagon.

So, lay aside your giddy joy at the fact that all 47 U.S. Senate Republicans are co-sponsoring the Balanced Budget Amendment, Senate Joint Resolution 10 (March 31, 2011).  Let’s go through it.  What you believe the BBA will do, and what it will actually do, are two very different things indeed.

But First:  How Did We Get a National Debt of $14.4 Trillion?

Congress gave us a debt of $14.4 trillion which increases at the rate of $4 billion a day.  Let us look at a few of the items which comprise this $14.4 trillion debt:

Congress spent $2.6 million to teach Chinese prostitutes how to drink responsibly. Congress appropriates $147 million a year to subsidize Brazilian cotton farmers.  Congress spent $3.6 million to fund a study of the sex lives of dope-smoking, menstruating monkeys.  Congress paid $500,000 to paint a salmon on an Alaska Airlines passenger jet.  Congress appropriates Foundation where they fund such research as that which revealed the amazing fact that sick shrimp do not perform as well on stamina tests as do healthy shrimp.Citizens Against Government Waste’s pig book shows Congress spent $16,547,558,748. on pork projects last year.  In Sen. Tom Coburn’s Waste Book 2010, which lists 100 spending projects, he shows that $1.5 million was spent to spruce up apartments in Shreveport, La. before they were torn down.

All this spending – every penny of it – and trillions more which is not here listed – has one thing in common:  It is all unconstitutional as outside the scope of the powers delegated to Congress in the Constitution. Congress has no constitutional authority to spend money on these projects.

So!  It was Congress’ unconstitutional spending which put us in the mess we are in today.

What Does Our Constitution Permit Congress To Spend Money On?

WE THE PEOPLE ordained and established a Constitution wherein the powers WE delegated to the federal government are limited and defined – “enumerated”.  Read the list at Art. I, Sec. 8!  Basically, all WE gave Congress authority to do for the Country at large is international relations, commerce & war; and domestically, the creation of an uniform commercial system (weights & measures, patents  & copyrights, a money system based on gold & silver, bankruptcy laws, mail delivery & road building.)  Some Amendments authorize Congress to make laws protecting civil rights. That’s about it, Folks!  The list of objects on which Congress may lawfully appropriate funds is short.  The only significant authorized expense is the military.  James Madison, Father of the U.S. Constitution, said in Federalist No. 45 (9th para):

The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation, and foreign commerce; with which last the power of taxation will, for the most part, be connected. The powers reserved to the several States will extend to all the objects which, in the ordinary course of affairs, concern the lives, liberties, and properties of the people, and the internal order, improvement, and prosperity of the State.  [boldface added]

Note that Madison contemplated that the federal government would be financed in large part by taxation on foreign commerce.  That is because the constitutional powers of the federal government are so limited & defined!  The States and the People are to handle everything else.

Do you now see that Our Constitution does not authorize Congress to pay for a museum for neon signs ($5.2 million),  to archive memorabilia for a rock group ($615,000), or to post poems in zoos ($997,766.)?  [See Sen. Coburn's Waste Book 2010].  Congress has no lawful authority to do most of what they do. They just do it because they want to, they have been doing it for a long time, and WE haven’t known enough to stop them.  Our $14.4 trillion debt was caused by Congress’ spending in thousands of areas where they have no constitutional authority to spend.

Is the BBA Really the Solution? 

So!  These 47 Senate Republicans (and some in the House) are showing you how much they now “care” about fiscal responsibility by supporting the BBA.  But think:  Why don’t they control their spending now?  The Republicans control the House – NO spending can get through the House unless the Republicans approve it.  So if the Republicans really wanted to control spending and balance the budget, they could do it now. Why don’t they do it?  Because they don’t want to.

Furthermore, the BBA they support with such broad smiles and glib promises of future fiscal responsibility, doesn’t make them control their spending.  Instead, it would legalize spending which is now unlawful and would markedly increase the powers of the federal government. And it would do-nothing to reduce spending.  In short, the BBA is a Scam and a Terrible Trick.

What Would We Get From the BBA ?

In plain English, this is what the 10 Sections of the BBA mean  [but read it yourself  it's very short]:

Section 1: They won’t spend more than they take in unless they vote to spend more than they take in.

Section 2: They won’t spend more than 18% of the GDP unless they vote to spend more than 18% of the GDP.

Section 3: The President will write the budget: He will designate the taxes, and what the money will be spent on.  He won’t spend more than he decides to tax you for, and he won’t spend more than 18% of the GDP.  The GDP is a computation made by the Bureau of Economic Analysis in the Department of Commerce, an agency under the control of the President. [Do you see?  The President controls the agency which computes the number which limits his spending.]

Section 4: Congress won’t make a law raising your taxes unless they vote to raise your taxes.

Section 5: Congress won’t raise the debt limit unless they vote to raise the debt limit.

Sections 6 & 7: Congress can waive the above provisions of the BBA (except for Sec. 4 which says they can’t raise your taxes unless they vote to raise your taxes) when there is a declared war or  a “military conflict” which they think justifies their waiving the above provisions of the BBA.

Section 8:  Courts can’t order your taxes to be raised. [But you can bet your life that this section, together with section 3, will be seen to authorize the President to order that your taxes be raised.]

Section 9: I leave this to others to explain. But be assured the President’s minions will define stuff however he wants; make stuff “off-budget” or “on-budget” to fit his agenda.

Section 10:  Congress can make laws to enforce the BBA, and can rely on numbers provided by the President who is to be given constitutional authority to order tax increases & decide how to spend the money.

So!  Do you see?  You get no benefit from the BBA.  But it will cause us irreparable harm.

How Would the BBA Cut the Heart Out of Our Constitution?

1. It would Transform Our Constitution From One of Enumerated Spending Powers To One of General (“Unlimited”) Spending Powers.

Congress’ Powers are enumerated.  Thus, the objects on which Congress may lawfully appropriate funds are limited to those listed in the Constitution.  Congress has ignored the limitations on its powers for many decades – but at least the limitations are still in the Constitution, to be invoked if We The People ever repent. 2

But the BBA, by ignoring the unconstitutional objects of Congress’ spending, and by merely limiting the amount of such spending to 18% of the GDP & the taxes the President assesses, repeals the enumerated powers aspect of our Constitution.  Furthermore, if Congress limited its appropriations to its enumerated powers, they could not possibly spend a sum as vast as 18% of the GDP.  Thus, the BBA is clear intention to repeal the enumerated powers, and transform the federal government into one of general and unlimited powers.

Congress’ idiotic spending is now unlawful & unconstitutional. But with the BBA, it would become lawful & constitutional, as long as the total spending doesn’t exceed the limits (unless they waive the limits).  With the BBA, it will become lawful for them to appropriate funds for whatever the President (who will write the budget) says!  3

2. The BBA Transfers Control of the “Purse” from Congress to the President.

The federal government didn’t even have a budget until Congress passed the Budget. That “law” purported to grant budget making power (taxes & appropriations) to the President.

But the Budget Act of 1921 is unconstitutional: The Constitution places the taxing & appropriations powers squarely in the hands of  Congress – not the Executive Branch; and contrary to the beliefs of indoctrinated lawyers, Congress may not “amend” the Constitution by making a law. 4

Article I, Sec. 8, cl. 1, grants to Congress the Power to lay and collect Taxes; and Art. I, Sec. 9, next to last clause, grants to Congress the Power to make the appropriations:

No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.

Accordingly, for most of our history, Congress made appropriations as the need arose; determined the taxes, and kept records of  both. [See Bruce Bartlett's excellent history of the budget process.]

Our Framers gave us an elegant system of separated powers, where Congress commands the purse – not the Executive Branch and not the Judicial Branch!  In Federalist No. 78 (6th para), Alexander Hamilton outlines this separation of powers:

…The Executive not only dispenses the honors, but holds the sword of the community. The legislature not only commands the purse, but prescribes the rules …  The judiciary … has no influence over either the sword or the purse; no direction either of the strength or of the wealth of the society… 5

In Federalist No. 58 (4th para from end) Madison explains why the House alone is granted power to propose taxes (Art. I, Sec. 7, cl. 1):  To protect The People from overreaching by the other branches of the federal government:

…The House of Representatives cannot only refuse, but they alone can propose, the supplies requisite for the support of government. They, in a word, hold the purse that powerful instrument by which we behold, in the history of the British Constitution, an infant and humble representation of the people gradually enlarging the sphere of its activity and importance, and finally reducing … all the overgrown prerogatives of the other branches of the government. This power over the purse may … be regarded as the most complete and effectual weapon with which any constitution can arm the immediate representatives of the people, for obtaining a redress of every grievance…

Ponder Hamilton’s and Madison’s words. You must understand what they are saying if we are to restore our Constitutional Republic.  Otherwise, the BBA will usher in a totalitarian dictatorship.

Pursuant to the unconstitutional Budget Act of 1921, the President has been preparing the budget. Since the Budget Act is unconstitutional, the President’s preparation of the budget has been likewise unconstitutional.  Section 3 of the BBA would legalize what is now unconstitutional and unlawful.

But Section 3 of the BBA does more than merely legalize the unlawful. It actually transfers the constitutional power to make the appropriations and to determine taxes to the PresidentCongress will become a rubber stamp.

Now look at this pretty little snare:  Section 8 of the proposed BBA says:

No court of the United States or of any State shall order any increase in revenue to enforce this article.  [emphasis added]

Our Constitution does not grant to courts the power to “order” tax increases.  So why does Sec. 8 of the BBA say they can’t do it?

It’s a trap!  There is an ancient maxim of  legal construction which goes like this:  “The Expression of One Thing is the Exclusion of Another”:

An implied exclusion argument lies whenever there is reason to believe that if the legislature had meant to include a particular thing within the ambit of its legislation, it would have referred to that thing expressly. Because of this expectation, the legislature’s failure to mention the thing becomes grounds for inferring that it was deliberately excluded. Although there is no express exclusion, exclusion is implied. …[emphasis added]

Why does Sec. 8 of the BBA exclude the President?  From this exclusion, one may reasonably infer that the intent of Sec. 8 is to permit the President to order tax increases.  If the BBA is ratified, you can be sure that Presidents will claim power under Sec. 8 of the BBA to order tax increases. That inference is strengthened by the fact that Sec. 3 of the BBA transfers constitutional power over the Budget to the President.

So!  The BBA surrenders the purse to the President!  Our Framers understood the danger of having the sword & the purse held by one person.  That is why our Constitution provides for Congress to make the decisions on taxes & appropriations; and, as pointed out in Federalist No. 72 (1st para), the President is to apply and disburse “the public moneys in conformity to the general appropriations of the legislature”.

With the BBA, Congress’ sole remaining constitutional function over taxing & spending will be to rubberstamp the dictates of the President.

3. The BBA grants judicial power over taxing & spending to the federal courts.

Article III, Sec. 2, cl. 1 states:  “The judicial Power shall extend to all Cases…arising under this Constitution.”

If the BBA is ratified, it will become an Amendment to the Constitution which is subject to the judicial authority of the federal courts.

You say the BBA won’t transfer power over the purse to the President?  You say Congress won’t become a mere rubberstamp whose sole remaining function over taxing & appropriations is to enact into law the dictates of the President?

Who will decide?  Since this would be an issue “arising under the Constitution”, the supreme Court will decide. The Judicial Branch – a branch which Hamilton took care to point out should have no power whatsoever over The Purse.

And so five (5) people on the supreme Court will decide an issue which goes to the heart of our Constitution – an issue which the People clamoring for the BBA don’t even know exists.  And remember:  Our supreme Court is filled with fallen people who looked at Sec. 1 of the 14th Amendment and said it means that women may kill their babies. They looked at the 1stAmendment and said it means that Congress may regulate political speech, and courts may ban Christian speech in the public square, but it gives Westboro “baptists” a “right” to spew their filth & hate at private funerals of dead American heroes.

If the BBA is ratified, do you really want five (5) of those judges deciding this issue? 6

What is the Solution to The Financial Plight Congress has put us in?

We have 47 Republican U.S. Senators who don’t understand [or do they?] the ramifications of the BBA which some of them (most notably Senators Jim De Mint & Mike Lee) are determined to cram down our throats.  Many supposedly conservative talk show hosts & pundits  (most notably, Redstate.com), are carrying their water.  Whether these people are fools or tyrants, I do not know; but you must learn that you can not trust anybody. You must insist that people prove what they say!

WE THE PEOPLE must reclaim our glorious Heritage. We must find & support candidates who understand the Constitution, obey it, and agree to work to dismantle the unconstitutional federal apparatus.  We can eliminate the trillions of dollars of unconstitutional spending by restoring constitutional government.  In an orderly fashion, we can dismantle the multitude of offices and agencies and departments of the last 100 years which harass us and eat out our sustenance.

Oh my People!  The grinning politicians and pundits who promise you “fiscal responsibility” with their BBA will actually strip you of the protections of Our Constitution. Their BBA will legalize a totalitarian dictatorship.  Do not be deceived by them – they are leading you astray, and their BBA will destroy us.

Oh you Proponents of this thoroughly Evil Scheme:  I throw my glove in your face:  Show me, if you can, where I am wrong.  Or rethink your position. PH

1  Our Constitution does not authorize Congress to fund scientific research. Congress’ only power in the areas of the arts and sciences is to issue patents and copyrights (Art. I, Sec. 8, cl. 8).  If Congress obeyed Our Constitution and stopped funding “scientific” research, the proponents of these idiotic studies would have to do something useful instead of sucking at the taxpayers’ teat.

2  We must repent of  our desire to live at other peoples’ expense. This is the contradiction which undermines the Tea Party.  Many don’t want a constitutional government of limited & enumerated powers. They just want to eliminate funding for programs they don’t like. They want their social security, their Medicare, their government retirement pensions, their perks.  I beg each of you who is now living at other peoples’ expense:  Are you willing to sacrifice your grandchildren so that  you can keep your handouts?  Or will you accept an orderly & gradual dismantlement of the unconstitutional “entitlement” programs?

3  Are you aware that federal executive agencies are forming their own SWAT teams?  Are you aware that DHS is federalizing our local police and using their fusion centers to turn them into a national secret police – America’s version of the STAZI?  Building Obama’s “civilian national security force” which is “just as powerful just as strong just as well funded as the military” takes money.  Lots of it!  The BBA will permit the President to write into the Budget the funding needed to build this armed force; and it will be under his sole & personal control.

4  Article V sets forth the exclusive methods of amending The Constitution.

5  In Federalist No. 26, Hamilton addresses how Congress is to determine (after public deliberations) the appropriations for the military; and warns that the President must never be given power over the purse respecting armed forces:

The legislature of the United States will be OBLIGED, by this provision [Art. I, Sec. 8, cl. 12], once at least in every two years, to deliberate upon the propriety of keeping a military force on foot; to come to a new resolution on the point; and to declare their sense of the matter, by a formal vote in the face of their constituents. They are not AT LIBERTY to vest in the executive department permanent funds for the support of an army, if they were even incautious enough to be willing to repose in it so improper a confidence…. (9th para) [capitals are Hamilton's; boldface mine]

It has been said that the provision which limits the appropriation of money for the support of an army to the period of two years would be unavailing, because the Executive, when once possessed of a force large enough to awe the people into submission, would find resources in that very force sufficient to enable him to dispense with supplies from the acts of the legislature…. (12th para)

Do you see that Hamilton warned us not to trust the President with power to determine the funding for the armed forces?  Learn from Hamilton & Madison. Or perish.

6        If the President disagrees with the supreme Court’s decision, he – who would, thanks to the BBA, hold both the sword & the purse – could ignore it with impunity. PH

        THANK YOU Publius Huldah

ATTENTION PATRIOTS: CALL THIS NUMBER

 

1-202-224-3121 It may ring several times, as they are a switchboard to your congressional representative. Give them your Name and zip code and they will connect you to your congressional representative’s office. Tell them you are adamantly opposed to the balanced budget amendment, as it will make a dictator out of the executive branch. See my article today at http://anationbeguiled.com

 Stop or I’ll Shoot part 1

Why the “Balanced Budget Amendment” is a Hoax – and a Deadly Trap

How many of you want Obama to have the power of the purse? That belongs to CONGRESS ALONE, DON’T LET THEM GIVE IT AWAY! Most of the supporters of this bill don’t have the brains to understand it. EVEN RON PAUL SIGNED ON geeeezze!

READ THE ARTICLE

THIS IS THE MOST IMPORTANT THING YOU WILL DO IN YOUR LIFETIME. TALK IT UP WITH EVERYONE YOU KNOW, AND SEND IT TO EVERY ONE IN YOUR ADDRESS BOOK. IF IT GETS PASSED CALL YOUR GOVERNOR AND TELL THEM THEY WON’T HAVE A PLACE TO HIDE IF THEY AMEND THE CONSTITUTION AND GIVE ALL CONTROL TO OBAMA.

Surely, only the dull and ignorant are unaware that our three branches of government are working for the international bankers and against the people of the United States of America, and if this was not bad enough, read about the bankers move to destroy America by destroying the dollar as the world reserve currency and implementing a global SDR currency. It is printed below this article.

6 Steps by the IMF for a One-World Currency

OLDDOGS COMMENTS

If you would turn that stupid TV off, and follow the internet revolution news sources, you would know by now how America is being destroyed, and know what to do about it.

STOP OR I’LL SHOOT PART 2

 6 Steps by the IMF for a One-World Currency

 Brandon Smith

 Alt-Market

In mainstream financial circles, the concept of a global currency is often spoken of only with an atmosphere of caution. It is approached always in hypothetical terms. It is whispered of as some far off dream; a socio-economic moon landing in the far reaches of fiscal space. Perhaps in 2015, or 2020, or maybe 2050, but certainly never just over the horizon, or right around the corner posing as an innocuous trade asset created over 40 years ago and used only on rare occasions. Unfortunately, the development of a centralized global security representing the creation of a supranational economic body is much closer than many would care to admit…

The most common argument made in the mainstream against a global currency taking shape is the argument that no other currency in the world today has the strength or widespread circulation necessary to replace the dollar as a primary reserve unit. This is true, if, you only look at separate currencies, and not the big picture. The reality is, central banks and the IMF have no intention of replacing one national currency with yet another national currency as the world reserve. What they DO intend to do, however, is replace the dollar with a basket of national currencies linked together and homogenized under a single unit. This has been openly announced by the IMF for months, and Dominique Strauss-Kahn even produced a press release explaining the plan (this was before he apparently watched ‘Maid in Manhattan’ 57 times in a row then allegedly tried to “romance” a cleaning lady, which of course landed him in court):

http://www.imf.org/external/np/speeches/2011/021011.htm

The G20 has also raised discussion of a global currency and a greater oversight role for the IMF on a number of occasions:

http://www.themoscowtimes.com/business/article/at-g20-kremlin-to-pitch-new-currency/375364.html

http://www.asianews.it/news-en/Sarkozy-in-favour-of-an-international-currency-of-reference-21179.html

A more in-depth look at the IMF plan for the SDR can be seen in a white paper released at the beginning of this year entitled “Enhancing International Monetary Stability – A Role For The SDR?”:

http://www.imf.org/external/np/pp/eng/2011/010711.pdf

A global currency, or at least the foundation for one, already exists in the form of “Special Drawing Rights” (SDR’s), created by the IMF in 1969 as paper collateral used to replace gold as the primary means of international trade between governments and central banks without the need for Forex exchanges. That is to say, the SDR was used as a tool for displacing the strength of gold. Today, the asset has morphed into a trade mechanism representing a basket of currencies, and, a tool to displace the U.S. dollar as the world reserve currency.

Skeptics will argue that the SDR is a “long way” from being ready to unseat the dollar, but, these economists and pundits rarely consider that the financial circumstances of markets today could quickly change tomorrow. Yes, by the standards of this very moment, a move to elevate the SDR to reserve status is impractical, mainly, because the dollar is still clinging to its relative value and widespread use. This will not be the case for much longer.

Over the past month, the “big three” ratings agencies; Moody’s, Fitch, and S&P, have suddenly decided to do the job they should have been doing years ago, and have begun a wild roller coaster ride of credit downgrades for countries with immense Debt-to-GDP ratios. Greece has been junked. Ireland has been junked. Portugal has been hit. Spain has been hit, and is ready for yet another downgrade. Italy is on the chopping block. Finally, even the U.S. is near losing its AAA status as S&P has announced it will decide within the next month whether a downgrade of our rating will soon be necessary.

The most important aspect of the S&P announcement is their statement that the downgrade is NOT about the impending debt ceiling decision, but America’s overall creditworthiness and our lack of ability to maintain our current spending and inflationary habits. That is to say, even if the debt ceiling is raised, as all the Keynesians are clamoring for, we could still lose our top credit rating:

http://market-ticker.org/akcs-www?singlepost=2623832

This storm of downgrades after years of inaction by ratings agencies, in my view, is simply not a coincidence. The fact that Ben Bernanke has admitted that QE3 is on the table as well after the Fed denied any need for more stimulus only two months ago is also highly suspicious (though he tried to take back the statement later after a thorough grilling from Ron Paul):

http://www.businessinsider.com/black-and-white-and-red-all-over-2011-7

The bottom line is that if the ceiling is raised, the Fed is ready to print the dollar into an early grave. If the ceiling is frozen in place, America defaults on its debts and its credit rating evaporates. Either way, the dollar will inevitably lose its world reserve status. Enter the SDR…

What we are witnessing is a careful and deliberate “shuffle” of economic circumstances towards a financial and political environment more receptive to a global currency. Or, indeed, a public so desperate for stability as to have no other choice but a global currency. Here are some of the steps that will likely take place and in certain cases must take place before the SDR is able to fulfill the role the IMF intends. Many of these steps are already being implemented as this is written:

1) The IMF Must Increase Circulation Of SDR’s

The normal restrictions on SDR printing were removed in 2008 by the IMF just as the credit crisis began to take shape under the guise of “producing more liquidity”. SDR’s can now be created in unlimited numbers. Allocations of SDR’s by IMF member countries leaped in 2008 to 2009. America’s holdings of SDR’s grew from 21 billion to 203 billion in the span of a single year:

http://www.imf.org/external/np/fin/tad/extsdr1.aspx

Using the “SDR Department”, the IMF has also been issuing SDR’s to emerging market countries and needy nations off the books, at the expense of the American taxpayer! Rich countries like the U.S. pay into the SDR Department program which is supposedly designed to redistribute “foreign aid” to poorer countries as low interest loans denominated in SDR’s. These loans show up nowhere on our Federal Budget:

http://www.house.gov/jec/imf/sdrdept.pdf

In 2004, the cost of paying into this program was around $5 Billion a year, but this has surely been expanded since. Finding accurate numbers on current U.S. loans through the hidden SDR Department program has proven difficult, to say the least…

The point of all this? The SDR is being widely circulated under various operations, some of them public, some of them not so public.

2) Standardized Exchange Tables For The SDR Must Be Put In Place

The IMF now releases daily conversion and exchange tables to SDR’s for almost every other currency on the planet:

http://www.imf.org/external/np/fin/data/rms_five.aspx

One important aspect of SDR conversion to take note of is that the currencies most highly valued on global forex markets, and the SDR table, are the Bahraini Dinar, and the Kuwaiti Dinar. The Bahraini Dinar is pegged directly to the SDR basket, while the Kuwaiti Dinar is pegged to “an undisclosed basket of currencies” (probably the SDR). The dollar, on the other hand, is relatively weak in comparison when converting to SDR’s, even though most of the IMF’s funding, and thus ability to create SDR’s, comes from the U.S.

Doesn’t seem fair, does it…?

Another important fact to remember is that the IMF admittedly sets the valuation of the SDR using factors outside of natural supply and demand. Meaning, they have the ability to place any value they please on the SDR versus other currencies. It is no surprise then that currencies which tie themselves to the IMF basket and placate IMF desires are rated strong in SDR’s, and perform well in forex markets, while the dollar, which remains (supposedly) independent, is weak versus SDR’s. Today, one dollar is worth 62 cents in SDR’s.

3) The SDR Must Be Made Indispensable To Global Markets

The IMF has openly suggested that the SDR could be used as an intermediary asset in volatile currency markets through what is sometimes referred to as a “Substitution Account”. Meaning, if China, for example, wished to dump their holdings of U.S. dollars because they are devaluing rapidly, they could exchange those dollars for SDR’s instead of directly converting them into another standard currency, like Euros, or Yen. This, according to the IMF, would lessen the direct damage to the Dollar, because the SDR is partly denominated in dollars. Therefore, as China throws out dollars in exchange for SDR’s, the value of the American Greenback goes down, but conversely, the value of America’s SDR holdings will go up.

This sounds like a brilliant strategy to offset sudden currency collapse. However, it is actually a very subversive way to slowly elevate the SDR as a world reserve currency itself, and to replace the dollar entirely, while the IMF plays the hero. It also allows the IMF to slowly “harmonize” all the world’s currencies until there is no distinction in their value. The SDR becomes a de facto reserve unit without officially overthrowing the dollar.

If the U.S. is faced with the nightmare of having its own currency dumped by international central banks, obviously, our Treasury would jump at the chance to support conversion to the SDR to lessen the damage, rather than face the full brunt of losing our reserve status. In fact, the U.S. would have NO CHOICE but to support the SDR and the IMF as the intermediary in all global financial transactions, otherwise, we would face certain long term full spectrum collapse. The only support holding up our financial system would then be our membership in the SDR basket. We would become completely dependent, and the IMF would have total centralized control over our economy.

What the IMF has done is create a potential environment in which any country that does not participate in SDR exchange will be left in the dust by every country that does. They have conjured an artificial economic matrix, where traditional laws of supply and demand no longer apply. A kind of “manipulated evolution” of finance. A chimera economy. They will have the power to determine the value of every currency on the planet arbitrarily using the SDR Substitution Account.

4) China Must Be Given Membership In The SDR

Right now, it appears, the only thing holding the SDR back from its debut as a global currency asset is the inclusion of emerging markets into the IMF basket. Talk of China joining the basket in 2015 has been floating around for the past couple years. However, I believe that the inclusion of the Chinese Yuan may come much faster than this.
New IMF Managing Director, Christine Lagarde, has offered China a greater role in the IMF power structure, including a post for Min Zhu, a Chinese national, as a deputy managing director:

http://www.reuters.com/article/2011/07/06/us-imf-lagarde-china-idUSTRE7655JM20110706

Lagarde and members of the G20 have also been pressing hard for the addition of the Yuan and perhaps other currencies into the SDR. A decision on Chinese inclusion may come as soon as this November:

http://www.emergingmarkets.org/Article/2818350/G20-presses-for-yuan-SDR-inclusion.html

http://english.capital.gr/News.asp?id=1163175

5) China Must Decouple Completely From The Dollar

One of the points of contention over Chinese inclusion in the SDR is its ties to the U.S. dollar and economy. That is to say, China would first have to decouple from the dollar, before coupling to the SDR. Its sounds like some weird parasitic experiment, and, it is.

China started taking steps to make decoupling from the U.S. and the dollar a reality back in 2005 (which suggests foreknowledge of collapse), when they began issuing Yuan denominated bonds (to circulate Yuan around the world), and, when they began converting away from an export based economy and towards a consumer based economy. The problem is that because of the wider circulation of Yuan, the increase in stimulus, and the Chinese refusal (so far) to allow faster currency appreciation, China is now in the midst of a double digit inflationary crisis (that’s REAL inflation folks, not fraudulent Chinese CPI numbers):

http://english.peopledaily.com.cn/90001/90776/90882/7432861.html

Because they have deliberately restructured towards a consumer based economy, eventually, China will have to allow the Yuan to increase substantially in value versus other currencies in order to amplify the buying power of its citizens. Otherwise, they will be crushed under the weight of rising prices:

http://www.reuters.com/article/2011/06/26/us-britain-china-idUSTRE75P1V120110626

This cannot be done without a considerable dump of their forex reserves and treasury holdings, most of which are composed of U.S. dollars and securities. This means that in order to counter inflation, and to be included in the SDR, China will have to liquidate a large portion of its U.S. holdings. This would strike the American economy hard.

6) The Dollar Must Be Removed As The World Reserve Currency

All of the above factors are leading towards one obvious conclusion; the end of the dollar as a reserve currency. The IMF will never achieve its goal of complete centralized administration of the global economy without a common supranational currency unit. And, a supranational currency unit cannot exist while the dollar remains in its current position. Thus, for the IMF to succeed, the dollar must be removed.

The expansive debt of the U.S., the endless fiat printing of the Federal Reserve, the Chinese adaptation away from the dollar and towards the SDR, and the quiet spread of the SDR itself, are all leading to this end. This does not mean, though, that the tangible version of the dollar will disappear. The interesting thing about the SDR con game is that many Americans may barely notice the transition of the global economy into IMF hands, because physical dollars will likely remain. We might feel the heartache of a devaluing monetary system, and an extremely weakened economy, but the flow of power will be obscured for a time from those who are unaware. In the end, all currencies will be tied to and completely reliant on the SDR, but our Greenback funny money will still be in our pockets. The issuance of an “SDR note” may come one day (if we allow this farce to continue), but it is not necessary. As long as every currency is required to be pegged to the SDR, the IMF will retain control.
A common assumption is that changes like these take place in some distant future we will never witness, not right under our noses while we sleep. The current evidence suggests, though, that an engineered transference to a highly condensed global economic system is underway right now, and that our country will suffer greatly in the process. To understand the tactically implemented disaster we are about to experience, it is vital to become aware of the intended end result. Just as in understanding any criminal act, it is vital to first understand a criminal’s ultimate motive.

THANK YOU BRANDON

Join Alt-Market today, find a barter network in your area, or start your own. Insulate yourself and your family from economic collapse before it is too late. You can contact Brandon Smith at brandon@alt-market.com.

 OLDDOGS COMMENTS

 Even those of us in the internet revolution who are not rocket scientist have figured out how our country has been destroyed, and by now you should be well prepared to continue your education on your own.

WARNING! You must do this without prejudice because patriots are Americans, not democrats or republicans, those scumbags are traitors. If you have been involved in those two parties, empty your mind of all the horse shit and start thinking like our forefathers who tried to give us a free from tyranny government, but failed. This time we better get it right and people who are naïve or OVER educated won’t cut the mustered. The middle class working man and woman who have natural common sense and have learned from personal experience that the scholars can’t pick their nose and chew gum must pick up the tiller and steer the ship of state. To be sure people like Edwin Vieira Jr are gong to be needed for consultation, but the governing body must remain in the hands of the middle class where they can be reached by their constituents, and understand their first duty is always to preserve freedom. Our present degenerate politicians must be retired to oblivion, and a new breed of honest people found to steer the new supership, the USS FREEDOM. The bankers must be exterminated from our society.

A free country cannot be led by thief’s and lying career politicians. All this Nation really needs is to get the middle class educated on the political history of America, and they will never again lay down with the apathetic surfs. A DUMB-ASS PREFERS A MASTER.

Weather we declare another “Declaration of Independence “and start from scratch, or revise what we have, this shit is going to STOP

STOP OR I’LL SHOOT PART 3

There are three main events needed to transform America into a satellite of a one-world government, and all three are in high gear at this time. The global bankers are focused and ready to take down the most powerful of all governments, that is America, and the domino affect will take care of the rest. The procedure has been to (1)infiltrate our representative government with their agents, and this has been accomplished years ago, next, in order to avoid a massive uprising, (2)the masses have to be destitute and demoralized, and this event required a two-part attack. The bankers had to experiment with creating a global currency (SDR) and their government traitors and Federal Reserve (3) had to destroy the dollar as a reserve currency by creating an obscene national debt. Now they have in place actions that will create massive inflation and economic panic as the dollar loses its status as a reserve currency by devaluation. Whether by a constitutional amendment to centralize power in the executive branch, and or a default on our (THEIR) debt the final act has started. It may be played out in two different ways depending on what happens between now and Nov. 2nd. If they fail to make an agreement and default on the debt, the rest of the world’s governments may start a third world war, united against us in an attempt to kick-start their economies from the massive loss they will experience when we default. I do not think it will be a nuclear war as too many assets would be destroyed world wide, and conventional warfare is so much more profitable for the bankers. The one wild card here is (would foreign troops in America wake the masses up, or more likely just surrender)? Some would fight to the death, and that’s a fact, but how many is the big question, along with how long would their ammo and other supplies last. America is for all practical purposes industrially impotent. Many of us are willing to die, but many more are not, and I am sure many would turn on us. The only thing left in America that is united is the politicians. Another big advantage to the bankers of a conventional war is the aftermath is guaranteed to give them a passive population to do with as they please. The patriots will all be dead, so remember those war movies where the Jew’s are passively entering the gas chamber. You might be one of them!

The alternative is a massive asset grabbing by our government with the excuse being it needs the money to pay for their so-called entitlement programs resulting in years of ever-increasing poverty for all classes but the super rich. Don’t forget that there are hundreds of agenda 21 programs remaining unfinished, and many grunts are going to be needed to provide the manual labor. The passive leftovers will jump at the chance to slave for their masters. Those of us willing to die on our doorstep when they come to confiscate our home may be fed to the remaining slaves as food. I would not doubt for a minute that the bankers would stoop to any level to annihilate real patriots.

Take heart folks, maybe one of our generals will grow a set and perform a coup on DC. Then a covert annihilation of the bankers.

Yea and turtles fly.

God Bless,

OldDog


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